Evaluating the Possible Impact of Pension Reforms on Elderly Poverty in Europe

Abstract

Since the 1990s reforms have changed substantially both the nature of state pension provision and the level of generosity. This article tries to assess the impact of these changes using estimates of pension wealth for a number of hypothetical cases. By focusing on all prospective pension transfers rather than just those at the point of retirement, this approach can provide additional insights, especially on the impact of changes in benefit indexation.These estimates corroborate existing evidence that reforms have decreased generosity significantly. Moves to link benefits to contributions have made systems less progressive, raising adequacy concerns for certain groups. The reforms have, in particular, strengthened the need of ensuring better access to labour markets, of having in place adequate crediting arrangements and minimum pensions.

Exploring a blind spot in comparative pension reform research: Long‐term trends in non‐contributory pensions in Europe

“…Over the past 20 years, most Western European countries have implemented important changes to their public pension systems. Earlier research argued that in many countries, these reforms would likely lead to lower public pensions and a shift of risks towards future pensioners (e.g., European Commission, ; Grech, ; OECD, ; Zaidi et al., ). This observation stands in stark contrast to the relatively favourable trends in non‐contributory pensions documented in this article.…”

“…In general, these reforms have led to less generous contributory pensions and have shifted more risks towards individuals, with a more restrictive redistribution towards persons living on a low income (cf. Grech, ; Zaidi, Marin, & Fuchs, ).…”

Convergence or divergence? How the financial crisis affected European pensioners

“…Prior to the crisis, there were very substantial changes in EU pension systems (for details, see EC, ; and Grech, ). There are those who argue (e.g.…”

Untitled

“…Approximately one in six Danish state pensioners live entirely or primarily on a social state pension, 1 which provides a disposable income close to 60% of the median income in Denmark, making them objectively at risk of experiencing relative poverty, according to the official European Union (EU) definition. 2 The 1990's pension reforms in most European countries decreased the ability of the systems to prevent and reduce poverty in old age (Grech 2012;Schwartz 2006). Thus, relative poverty in old age remains an issue.…”